Initial estimate for U.S. non-agricultural labor cost per unit in Q2 fell short of expectations: 1.3% vs 2.1%

U.S. Q2 nonfarm unit labor costs came in at 1.3%, missing the 2.1% forecast and previous 1.8%, signaling slowing cost pressures and boosting Fed easing bets.

The preliminary figure for U.S. nonfarm unit labor costs in the second quarter came in at 1.3%, lower than the expected 2.1% and the previous reading of 1.8%. This significant deviation from expectations indicates a slowdown in the rise of corporate employment costs, boosting market expectations for further policy easing by the Federal Reserve.